Class Notes (834,818)
Accounting (108)
ACCTG322 (19)
Lecture

# Chapter 9 In Class Problems Solutions.pdf

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School
Department
Accounting
Course
ACCTG322
Professor
Trish Stringer
Semester
Winter

Description
In Class #9.1 – Prepare the sales budget Required 1: Prepare the sales budget for the quarter ending June 30th. Sales budget Total April May June for the qtr July August Budgeted sales in units 20,000 50,000 30,000 100,000 25,000 15,000 Sellingprice per unit \$ 10 \$ 10 \$ 10 \$ 10 \$ 10 \$ 10 Totalbudgeted sales \$ 200,000 \$ 500,000 \$ 300,000 \$ 1,000,000 \$ 250,000 \$150,000 Required 2: th Prepare the cash collections budget for the quarter ended June 30 . What amount is in accounts receivable at June 30 ?h Total Cash collections AR April May June for the qtr Sales \$ 200,000 \$ 500,000 \$ 300,000 January February March April \$ 30,000 \$ 140,000 \$ 170,000 May \$ 50,000 \$ 350,000 \$ 400,000 June \$ 125,000 \$ 210,000 \$ 335,000 July \$ 75,000 bad debt \$ 10,000 \$ 25,000 \$ 15,000 check \$ - \$ - \$ - Total AR \$ 50,000 \$ 125,000 \$ 75,000 Collected for the quarter \$ 905,000 In Class #9.2 – Prepare the production budget Required Prepare the production budget for the quarter. What is the budgeted inventory at June 30 ? th Production Budget Total April May June for the qtr July Unit Sales 20,000 50,000 30,000 100,000 25,000 Add:required endinginve 10,000 6,000 5,000 5,000 3,000 Totalrequired 30,000 56,000 35,000 105,000 28,000 Less: beginning inventory 4,000 10,000 6,000 4,000 5,000 Totalproduction 26,000 46,000 29,000 101,000 23,000 Prepare the direct materials purchases budget Required 1: th Prepare a direct materials purchases budget for the quarter ended June 30 . What is the direct materials inventory balance at June 30 ?th DM Purchases Budget Total April May June for the qtr July Units to be produced (usit 26,000 46,000 29,000 101,000 23,000 Quantity for each unit (kgs 5 5 5 5 5 Totalrequired for producti 130,000 230,000 145,000 505,000 115,000 Add:desired endinginven 23,000 14,500 11,500 11,500 TotalDM required (kg) 153,000 244,500 156,500 516,500 Less: beginning inventoky ( 13,000 23,000 14,500 13,000 DM purchases (kg) 140,000 221,500 142,000 503,500 Cost per kilogram \$ 0.40 \$ 0.40 \$ 0.40 \$ 0.40 Totalcost ofDM purchase \$ 56,000 \$ 88,600 \$ 56,800 \$ 201,400 Required 2: th Prepare the cash disbursements budget for the quarter ended June 30 . What amount is in accounts payable at June 30 ?th Cash disbursements for direct materials Total April May June forthe qtr Totalcost ofDM purchased \$ 24,000 \$ 56,000 \$ 88,600 \$ 56,800 March \$ 12,000 April \$ 12,000 \$ 28,000 \$ 40,000 May \$ 28,000 \$ 44,300 \$ 72,300 June \$ 44,300 \$ 28,400 \$ 72,700 July \$ 28,400 check \$ - \$ - \$ - \$ - \$ 185,000 Total AP \$ 12,000 \$ 28,000 \$ 44,300 \$ 28,400 \$ 28,400 In Class #9.4 - Prepare a direct labour budget Required Prepare the direct labour budget for the quarter ended June 30 . Direct labour budget Total April May June forthe qtr Units to produce 26,000 46,000 29,000 101,000 DLHs per unit 0.05 0.05 0.05 0.05 DLHs required 1,300 2,300 1,450 5,050 DL cost per hour \$ 10 \$ 10 \$ 10 \$ 10 Totalcost \$ 13,000 \$ 23,000 \$ 14,500 \$ 50,500 In Class #9.5 - Prepare a manufacturing overhead budget Required: Prepare the manufacturing overhead budget for the quarter ended June 30 . Manufacturing Overhead budget Total April May June forthe qtr DLHs required 1,300 2,300 1,450 5,050 Variable OH costs per D \$20 \$20 \$20 \$20 Totalvariable costs \$26,000 \$46,000 \$29,000 \$101,000 Fixed costs Cashcosts \$30,500 \$30,500 \$30,500 \$91,500 Non-cashcost \$20,000 \$20,000 \$20,000 \$60,000 TotalFixed OH \$50,500 \$50,500 \$50,500 \$151,500 TotalManufacturing OH \$76,500 \$96,500 \$79,500 \$252,500 In Class #9.6 - Prepare a selling & administrative budget for the year Required Prepare the selling and administrative budget for the quarter ended June 30 . Selling and administrative expense budget Total April May June forthe qtr Budgeted sales in units 20,000 50,000 30,000 100,000 Variable S&A rate per unt \$ 0.50 \$ 0.50 \$ 0.50 \$ 0.50 Totalvariable S&A costs \$10,000 \$25,000 \$15,000 \$50,000 Fixed S&A costs Cashcosts \$60,000 \$60,000 \$60,000 \$180,000 Non-cashcost \$10,000 \$10,000 \$10,000 \$30,000 TotalFixed OH \$70,000 \$70,000 \$70,000 \$210,000 TotalSelling& Admin \$80,000 \$95,000 \$85,000 \$260,000 In Class #9.7 - Prepare a finished goods budget for the year Required 1: Prepare the product cost per unit (using MOH applied) using absorption costing for the quarter ended June 30th. Cost per unit Qtper unit rate Total Direct materials 5 \$ 0.40 \$ 2.00 Direct labour 0.05 \$ 10.00 \$ 0.50 MOH (applied) 0.05 \$ 50.00 \$ 2.50 \$ 5.00 Required 2: th Calculate the ending budgeted finished goods inventory balance at June 30 . Ending budgeted FG inventory(qty) 5,000 Ending budgeted FG inventory(\$) \$ 25,000.00 Required 3: Calculate the MOH applied each month as well as the MOH over/under-applied for each month. Total MOH April May June for the qtr MOH actual(fromMOH budg e \$ 76,500 \$ 96,500 \$ 79,500 \$ 252,500 DL hours 1,300 2,300 1,450 5,050 MOH rate \$ 50 \$ 50 \$ 50 \$ 50 MOH applied 65,000 115,000 72,500 252,500 MOH over/under applied / mo \$ 11,500 -\$ 18,500 \$ 7,000 \$ - MOH over/under applied cumul \$ 11,500 -\$ 7,000 \$ - In Class #9.8 - Prepare a cash budget Required Prepare a cash budget for the quarter ended June 30 . th Cash Budget Total April May June for the qtr Beginning cash balance \$ 40,000 \$30,000 \$30,000 \$ 40,000 Cash receipts \$ 170,000 \$ 400,000 \$ 335,000 \$ 905,000 Totalcash available \$ 210,000 \$ 430,000 \$ 365,000 \$ 945,000 Cash disbursements for direct materials \$ 40,000 \$ 72,300 \$ 72,700 \$ 185,000 Direct labour \$ 13,000 \$ 23,000 \$ 14,500 \$ 50,500 MOH - cash \$56,500 \$76,500 \$59,500 \$ 192,500 S&A - cash \$70,000 \$85,000 \$75,000 \$ 230,000 Cash dividend \$49,000 \$ 49,000 Purchases ofequipment \$ 143,700 \$ 48,300 \$ 192,000 Interest \$ - \$ 647 \$ 661 \$ 1,308 Totaldisbursements \$ 228,500 \$
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